Boeing CEO Admits Mistake in Handling Warning-System Problem

Speaking before the industry-wide Paris Air Show, Boeing CEO Dennis Muilenburg told reporters Boeing’s communication with regulators, customers and the public “was not consistent. And that’s unacceptable.”

The U.S. Federal Aviation Administration has faulted Boeing for not telling regulators for more than a year that a safety indicator in the cockpit of the top-selling plane didn’t work as intended.

Boeing and the FAA have said the warning light wasn’t critical for flight safety. But the botched communication has eroded trust in Boeing as the company struggles to rebound from the passenger jet crashes in Indonesia and Ethiopia.

“We clearly had a mistake in the implementation of the alert,” Muilenburg said.

Pilots also have expressed anger that Boeing did not inform them about the new software that’s been implicated in the fatal crashes.

Muilenburg expressed confidence that the Boeing 737 Max would be cleared to fly again later this year by U.S. and all other global regulators.

“We will take the time necessary” to ensure the Max is safe, he said.

The model has been grounded worldwide for three months, and regulators need to approve Boeing’s long-awaited fix to the software before it can return to the skies.

Muilenburg called the crashes of the Lion Air and Ethiopian Airlines jets a “defining moment” for Boeing, but said he thinks the result will be a “better and stronger company.”

In the United States, Boeing has faced scrutiny from members of Congress and the FAA over how it reported the problem involving a cockpit warning light.

The company discovered in 2017 that a warning light designed to alert pilots when sensors measuring the angle of a plane’s nose might be wrong only worked if airlines had purchased a separate feature.

The angle-measuring sensors have been implicated in the Lion Air crash in Indonesia last October, and the Ethiopian Airlines crash in March. The sensors malfunctioned, alerting software to push the noses of the planes down. The pilots were unable to take back control of the planes.

Boeing told the FAA of what it learned in 2017 after the Indonesia crash.

Repairing trust in the Max is Boeing’s No. 1 priority, Muilenburg said — ahead of an upgraded 777 and work on its upcoming NMA long-range jet.

The Max, the newest version of Boeing’s best-selling 737, is critical to the company’s future. The Max was a direct response to rival Airbus’ fuel-efficient A320neo, one of the European plane maker’s most popular jets; Airbus has outpaced Boeing in sales in the category.

The Max crashes, a slowing global economy, and damage from tariffs and trade fights threaten to cloud the mood at the Paris Air Show. Along with its alternating-years companion, the Farnborough International Airshow near London, the Paris show is usually a celebration of cutting-edge aviation technology.

Muilenburg forecast a limited number of orders at the Paris event, the first major air show since the crashes, but said it was still important for Boeing to attend to talk to customers and others in the industry.

He also announced that Boeing was raising its long-term forecast for global plane demand, notably amid sustained growth in Asia.

Boeing expects the world’s airlines will need 44,000 planes within 20 years, up from a previous forecast of 43,000 planes.

Muilenburg projected that within 10 years, the overall aviation market — including passenger jets, cargo and warplanes — would be worth $8.7 trillion, compared to earlier forecasts of $8.1 trillion.

Both estimates are higher than the ones from Airbus, which sees slower growth ahead.

However, Airbus is heading into the Paris show with confidence. It is expected to announce several plane sales and unveil its A321 XLR long-range jet. Airbus executives said the Max crashes aren’t affecting their sales strategy, but are a reminder of the importance to the whole industry of ensuring safety.